Local government has spent more than treble the amount on outsourcing since the General Election, according to new research.
The latest arvato UK Quarterly Outsourcing Index has revealed that the total value of local government outsourcing contracts increased by 67% in the third quarter of 2015, when compared to Q2.
The average length of deals has also doubled from 54 months to 102 months.
Debra Maxwell, CEO, CRM & Public Sector, arvato UK & Ireland, said; ‘Now that the pre-election uncertainty among local authorities has passed, it’s no surprise to see a surge in outsourcing activity as councils look to leverage new efficiency savings.
‘With greater cuts expected in this month’s Spending Review, we expect an increasing number of councils to turn to outsourcing partners for the technology and expertise to help meet their challenges in the months ahead. Much of the low hanging fruit has already been picked, and councils are going to have to really transform how they operate and deliver services to meet new savings targets.’
The Index showed that councils had mainly signed ‘multi-scope IT outsourcing deals’ focusing on infrastructure.
